Renewable energies at 3U HOLDING AG with even more power in future

  • More than three times the installed nominal capacity to 150 to 200 MW in the pipeline
  • Project development in Brandenburg to be resumed after several years of interruption
  • Additional value enhancement potential through repowering of existing wind farms

Marburg, 20 June 2023 – 3U HOLDING AG (ISIN DE0005167902) is resuming its activities to develop new wind farms. At the end of 2018, 3U had temporarily stopped the further development of several wind farm projects in Brandenburg after the state parliament had issued a “moratorium” on wind expansion. Following the enactment of various laws to accelerate the expansion of renewable energies, in particular the “Wind Energy on Land Act” (WaLG) and the “Wind Energy Area Requirements Act” (WindBG), the state of Brandenburg is realigning its regional planning. This opens up new opportunities for 3U to continue existing projects and to tackle new ones. Also in connection with an already applied for and further repowering projects to be initiated in the existing wind farms, this results in a considerable potential for increasing value.

Depending on the weather conditions, 3U generates an annual average of more than 65 GWh (gigawatt hours) of electricity from the 53 MW (megawatts) of installed nominal capacity of its three wind farms and the solar park. This means that 3U’s electricity production currently corresponds to the consumption of more than 20,000 multi-person households.

Also as a contribution to achieving the national climate targets, it is part of the growth strategy in the 3U Group to significantly expand electricity generation in the Renewable Energies segment. To this end, the company is pursuing two main approaches: repowering, i.e. the replacement of existing wind turbines with more advanced new state-of-the-art turbines, and project development, i.e. the planning and construction of new wind farms. The implementation of both strategy components is dependent on the legal planning requirements as well as on continued complex approval procedures by municipal institutions and state authorities.

Repowering

As a first step, 3U submitted an application for repowering part of the Langendorf wind farm to the Burgenlandkreis district in Saxony-Anhalt in summer 2022. Currently, 15 wind turbines with a nominal output of 1.5 MW each are operated in Langendorf. The application proposes to replace seven of these turbines with five new wind turbines with a nominal capacity of 6.2 MW each. The installed capacity of the wind farm could be increased from currently 22.5 MW to 43 MW with the implementation of the project. Due to their design, the new turbines generate about twice as much electricity per MW of rated output as the existing ones. After repowering, the total electricity production of the Langendorf wind farm would therefore increase from the current average of around 32 GWh to around 100 GWh. The eight remaining old turbines will continue to be operated during the construction phase and afterwards. For the implementation of the project, 3U estimates a financing volume of around EUR 40 million and expects a return on equity of 15 %.

For a possible repowering of the Klostermoor wind farm, 3U has held promising preliminary talks with the local authorities in anticipation of the required application and approval process and has already extended the lease agreements with the land owners of the existing farm. With the planned replacement of the six existing wind turbines with three modern wind turbines, the installed capacity of the wind farm could be increased by a factor of 3.5 from the current 6 MW to 21 MW.

If the legal requirements also allow for the existing wind farm Roge and the other areas in the wind farm Langendorf, additional repowering projects could also be planned there and implemented after official approval.

Project development

The Brandenburg state government has instructed the regional planning authorities to replace the previous “exclusion planning”, which limited wind expansion, with “offer planning”, which will probably lead to the increased designation of suitability areas for wind energy use. In the course of this, the regional planning for those areas where 3U intends to develop wind farm projects and has already secured rights of use will also be redrawn. Currently, 3U is evaluating various projects in Brandenburg as promising. In part, this concerns areas in which 3U had already built wind farms in the past and subsequently sold them to investors as part of its corporate purpose of increasing value. The construction of further wind farms there appears to be possible in principle.

The planning documents prepared by 2018 indicated a maximum target capacity of more than 80 MW nominal output for the planned projects in Brandenburg. Higher values would be achievable with state-of-the-art turbines.

Currently, 3U is validating the prospects and potential of the projects it has worked on and will prioritise them appropriately – also from the point of view of the internal resources at hand. It is planned to extend the lease agreements with the landowners accordingly and adjust them as necessary.

For the distribution of electricity from wind power, 3U received an average of more than EUR 80 per MWh in the 2022 financial year; in the first quarter of the 2023 financial year, the revenue averaged around EUR 104 per MWh thanks to the new electricity supply contracts negotiated at the beginning of 2022 and the positive market environment.

The 3U Group’s Renewable Energies segment also includes the Adelebsen solar park with a nominal output of around 10 MW and an average annual electricity yield of around 10 GWh. Until 2032, remuneration is generally based on the guaranteed feed-in tariff of EUR 195 per MWh in accordance with the German Renewable Energy Sources Act (EEG).

Business model

In its 2022 financial year, 3U generated revenues of EUR 7.20 million in the Renewable Energies segment from the distribution of generated electricity. Due to the low operating costs optimised in the 3U Group, earnings before interest, taxes, depreciation, and amortisation (EBITDA) of 60 % to 70 % of revenues are achieved on average.

The generation of electricity from wind and sun is dependent on the weather conditions. Solar irradiation and wind yield are beyond the control of the operators. 3U HOLDING AG and its subsidiaries as operators achieve a high technical availability of the plants as a basic prerequisite for electricity generation through professional monitoring and maintenance of the wind farms. The revenue from electricity distribution is calculated as the product of the amount of electricity fed into the grid and the respective remunerated price. Consequently, the price negotiations and arrangements on the part of the management as well as the general electricity price level have an influence on the level of the economic success of the plants. A full implementation of the projects outlined here, both in repowering and through the development of new wind farm projects, would result in electricity generation in the Renewable Energies segment in the 3U Group multiplying and the installed nominal capacity increasing to 150 to 200 MW. While project development is financed from its equity capital resources, 3U relies mainly on bank loans and, where available, low-interest programmes from the KfW Banking Group to finance repowering projects and the construction of new wind farms.

“In our group-wide growth strategy, the segment Renewable Energies is now playing a significantly growing role again,” emphasises Uwe Knoke, responsible for strategy and business development on the Management Board of 3U HOLDING AG. “Repowering and project development cannot be realised overnight, but they open up considerable potential for revenues and earnings for us in the medium term. The strong expansion of our power generation from sun and wind is a contribution to achieving the national climate targets, but also to once again realising our corporate purpose of increasing value in the interest of all stakeholders.”

Further Information:

Thomas Fritsche
Investor Relations
3U HOLDING AG
Tel.: +49 6421 999-2211
Fax: +49 6421 999-1222
E-Mail: ir@3u.net

About 3U:

3U HOLDING AG (www.3u.net) has its headquarters in Marburg, Germany, and was founded in 1997. It is the operating management and investment holding company at the head of the 3U Group. For the purpose of increasing value for its shareholders, employees, customers, suppliers and all stakeholders, it acquires, operates and sells companies in the three segments ITC (Information and Telecommunications Technology), Renewable Energies and SHAC (Sanitary, Heating and Air Conditioning Technology).The 3U Group has successful and profitable business models based on megatrends in all three segments and is striving to achieve leading positions in the market, in particular with its e-commerce business area.
3U HOLDING AG’s shares are traded on XETRA, Tradegate and on the German regional stock exchanges (ISIN: DE0005167902; identifier: UUU).

Upgrading: Bundesbank certifies 3U HOLDING AG’s credit rating as “eligible” for the first time

  • Basis is the assay of the financial statements as of 31 December 2021
  • Rating corresponds to “investment grade”

Marburg, 13 June 2023 – 3U HOLDING AG (ISIN DE0005167902) has been classified as “eligible” by the Deutsche Bundesbank for the first time. Companies classified as eligible by the Bundesbank’s credit analysis may be treated by the Bundesbank and by other central banks of the Eurosystem for monetary policy purposes in the same way as companies that have been rated investment grade by one of the rating agencies recognised by the Eurosystem for monetary policy purposes. Credit claims against such entities are eligible as collateral for monetary policy operations of the Bundesbank and other Eurosystem central banks. The rating is based on an analysis of the annual and consolidated financial statements of 3U HOLDING AG as at 31 December 2021.

“We are pleased about the new rating – even if it has no direct influence on our financing conditions,” emphasises Christoph Hellrung, CFO of 3U HOLDING AG. “It underlines the stable course of our company. Since 2016, we have successfully focused on increasing value and on growth with our three Group segments in megatrends. In addition, we have understood how to continuously improve our key figures, also through solid financing and balance sheet policies. Also by this improved credit rating, we feel encouraged to consistently pursue our strategy, to strengthen the planned organic growth through targeted investments and to realise value increases in due course – in the interest and for the benefit of our stakeholders.”

For further information:

Dr. Joachim Fleïng
Investor Relations
3U HOLDING AG
Tel.: +49 (0)6421 999-1200
Fax.: +49 (0)6421 999-1222
email: ir@3u.net

About 3U:

3U HOLDING AG (www.3u.net), based in Marburg, Germany, was founded in 1997. As the operating management and investment holding company, it heads up the 3U Group. With a view to increasing the value for the shareholders, employees, customers, suppliers and all stakeholders, the company acquires, operates and sells companies in the three segments of ITC (Information and Telecommunications Technology), Renewable Energies and SHAC (Sanitary, Heating and Air Conditioning Technology). The 3U Group operates successfully and profitably with its business models in mega trends in all three segments and is striving to attain market leadership in particular with its e-commerce business model. 3U HOLDING AG shares are traded on XETRA, Tradegate and on German regional stock exchanges (ISIN: DE0005167902; identifier: UUU).

3U stays its course of organic growth

  • All three segments contribute to the Group’s performance
  • EBITDA margin at 14.0 % despite the lower level of other income
  • Management Board affirms guidance for 2023

May 10, 2023 – 3U HOLDING AG (ISIN DE0005167902) steered a steady course of organic growth in the first quarter of the financial year 2023.

Consolidated revenue from continued operations rose by 2.5 % to EUR 13.27 million in the first quarter of 2023 (Q1 2022: EUR 12.95 million). All three segments contributed to the Group’s success. The ITC segment generated a share of 23.5 % (Q1 2022: 24.0 %) in revenue (net of consolidation effects), while the Renewable Energies segment delivered 19.2 % (Q1 2022: 18.7 %) and the SHAC segment 58.4 % (Q1 2022: 58.3 %). The interim financial statements as at 31 March 2023 no longer comprise the revenue and results of operation, assets and liabilities, and information on the employees of the cloud computing business in the subgroup of weclapp SE which was deconsolidated in the financial year 2022. Consequently, the figures from continued operations from the first quarter of 2022 are used for year-on-year comparison.

EBITDA

In the first quarter of 2022, 3U HOLDING AG achieved net other operating income EUR 1.88 million from the property development project InnoHubs. In the period under review, this figure was considerably lower at EUR 0.08 million. At 61.7 % in the first quarter of 2023, the cost of materials ratio (cost of materials as a percentage of revenue) remained at the year-earlier level, as did the personnel expenses ratio (personnel expenses as a percentage of revenue) which came in at 15.7 % (Q1 2022: 15.7 %). Despite the higher level of maintenance expenses incurred by repairing a wind turbine in Roge, the percentage share of other operating expenses in sales that stood at 12.5 % dropped below the previous year’s level (Q1 2022: share of other operating expenses minus the costs associated with progress made in implementing office space sold in the InnoHubs building complex at 14.9 %). Against this backdrop, earnings before interest, taxes, depreciation and amortisation (EBITDA) declined to EUR 1.86 million in the first quarter of 2023 (Q1 2022: EUR 3.63 million). The downturn resulted from the lower level of other operating income from the InnoHubs property development project. The Group’s EBITDA margin came in at 14.0 % following on from 28.0 % in the year-earlier reporting period.

Group result

Depreciation and amortisation totalled EUR 0.85 million in the first quarter of 2023 (Q1 2022: EUR 0.84 million). Over the same period, 3U recorded a positive financial result of EUR 0.77 million (Q1 2022: EUR -0.07 million), along with tax expenses of EUR 0.19 million (Q1 2022: EUR 0.79 million).

The proportion of the consolidated result attributable to shareholders of the parent company stood at EUR 1.41 million in the reporting period (Q1 2022: EUR 1.55 million). Earnings per share therefore amounted to EUR 0.04 (basic and diluted).

Segment results

The ITC segment recorded stable revenue development in the period under review. Segment revenue of EUR 3.12 million was achieved in the first three months of 2023 (Q1 2022: EUR 3.11 million). The Data Center & Managed Services business generated growth. The improvement in internal efficiency and the increase in service revenue lifted the segment’s EBITDA by 9.1 %. EBITDA posted EUR 0.93 million compared with EUR 0.85 million the first quarter of 2022. The ITC segment’s EBITDA margin therefore came in at 29.7 % (Q1 2022: 27.2 %).

Due to the weather conditions and the temporary downtime of a wind turbine in Roge, the Renewable Energies segment generated less electricity than in the strong first quarter of 2022. At the start of 2022, however, the Management Board had already negotiated advantageous power purchase agreements going forward into the financial year 2023 for two wind farms, and current price levels in the market also supported the revenue trend. The revenue generated by the Renewable Energies segment grew by 5.4 % to EUR 2.55 million year on year (Q1 2022: EUR 2.42 million). Other operating expenses were higher due the necessary repair work. As a result, segment EBITDA also declined by 5.6 % to at EUR 1.90 million (Q1 2022: EUR 2.02 million).

Contrary to the weak industry environment, the SHAC segment’s revenue advanced by 2.7 % to EUR 7.75 million (Q1 2022: 7.55 million). Rising demand, especially for heating systems, was reflected in the expansion of PELIA Gebäudesysteme GmbH’s business which grew by more than 20 %. At the same time, the SHAC segment’s cost of materials ratio continues to run at a high level of 82.2 % (Q1 2022: 81.9 %). With costs otherwise largely steady, segment EBITDA improved again while nevertheless still remaining in marginally negative territory.

Cash flow and financials

Low cash inflow of EUR 0.27 million from investing activities (Q1 2022: cash outflow of EUR 5.87 million) and EUR 0.20 million from financing activities (Q1 2022: cash inflow of EUR 7.53 million) were offset by the cash outflow from operating activities amounting to EUR 4.40 million (Q1 2022: cash inflow of EUR 7.68 million), which includes the granting of short-term loans to members of the Supervisory Board and to employees and executives. Free cash flow in the first quarter of 2023 is therefore negative at EUR 4.14 million (Q1 2022: positive free cash flow of EUR 1.81 million).

Following the exercising of share options, subscribed capital rose by EUR 0.87 million. Along with the result for the period, this capital increase from Contingent Capital is the reason for the rise in Group equity to currently EUR 213.83 million (31 December 2022: EUR 211.17 million). The equity ratio stood at 87.4 % as of 31 March 2023 (31 December 2022: 86.7%).

The Management Board affirms its guidance announced in March and anticipates strong organic growth in 2023. Revenue in 2023 is expected in a range of between EUR 55.0 million and EUR 60.0 million. In view of the lower level of other income in line with expectations and the significantly higher proportion of lower margin retail business, the Management Board anticipates EBITDA of EUR 6.0 million to EUR 8.0 million. Net profit of the 3U Group is therefore expected in a range of between EUR 2.5 million and EUR 3.5 million.

The actual operating result may be higher or lower than forecast here due to the acquisition or sale of the Group’s operating units. The resulting effects can only be planned for to limited extent, however. The 3U Group remains true to its corporate purpose of creating value in the interest of its shareholders and all stakeholders and will continue to pursue its strategic course of expanding successful parts of the business successfully in the long term and, given the relevant demand, of selling them at attractive conditions.

In harmony with the corporate strategy, the Management Board is addressing a series of investment undertakings. Along with purchasing companies or customer bases in the financial year 2023 this pertains notably to repowering the Langendorf wind farm. Options for further very promising investments are meticulously assessed on a running basis.

Quarterly statement

The quarterly statement on the first quarter of the 2023 financial year will be published today. The report will be made available on the company’s website at www.3u.net under the “Investor Relations/Publications” heading.

For further information:

Dr. Joachim Fleïng
Investor Relations
3U HOLDING AG
Tel.: +49 (0)6421 999-1200
Fax.: +49 (0)6421 999-1222
email: ir@3u.net

About 3U:

3U HOLDING AG (www.3u.net), based in Marburg, Germany, was founded in 1997. As the operating management and investment holding company, it heads up the 3U Group. With a view to increasing the value for the shareholders, employees, customers, suppliers and all stakeholders, the company acquires, operates and sells companies in the three segments of ITC (Information and Telecommunications Technology), Renewable Energies and SHAC (Sanitary, Heating and Air Conditioning Technology). The 3U Group operates successfully and profitably with its business models in mega trends in all three segments and is striving to attain market leadership in particular with its e-commerce business model. 3U HOLDING AG shares are traded on XETRA, Tradegate and on German regional stock exchanges (ISIN: DE0005167902; identifier: UUU).